labour market

Hungary prioritises workforce training to address labour market challenges

Hungary’s government has made a policy priority of training for people who are out of work with low skills or without qualifications, the state secretary for employment policy said at a conference in Budapest on Wednesday.

Addressing the conference on managing demographic challenges by mobilising disadvantaged groups of people, Sándor Czomba noted that Hungary had a “labour market reserve” of around 200,000-300,000 people who could join the workforce.

He pointed to the need for state or corporate programmes to train or retrain older people, slower to adapt to technological development, in order to stay competitive in the labour market. Workplaces must adapt to the needs of an ageing society, allowing people to work longer, while preserving their health and skills, he added.

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Number of long weekends in Hungary in 2025: Full list revealed

office workers long weekends

Hungary’s 2025 calendar includes five long weekends, featuring one three-day, three four-day, and an exceptional five-day Christmas holiday. While some holidays fall on weekends, others are adjusted with “work Saturdays” to balance extra days off. Key dates include Easter, Pentecost, and 23 October, ensuring opportunities for extended breaks throughout the year.

Hungary’s 2025 calendar will feature several long weekends and adjusted workdays to accommodate public holidays. Minister of National Economy Márton Nagy has outlined the dates for long weekends and the corresponding Saturdays when work will be required to make up for these extra days off, 24.hu writes based on Portfolio’s report.

Long weekends in 2025

In 2025, there will be five long weekends, with one notable change: unlike 2024, there will be no six-day long weekends. Instead, 2025 will feature one three-day and three four-day long weekends, alongside an exceptional five-day long weekend for Christmas.

office workers
Photo: depositphotos.com
  • Three-day weekend:
    • 7-9 June (Saturday to Monday)
  • Four-day weekends:
    • 18-21 April (Friday to Monday, Easter)
    • 1-4 May (Thursday to Sunday)
    • 23-26 October (Thursday to Sunday)
  • Five-day weekend:
    • 24-28 December (Wednesday to Sunday, Christmas)

Hungarian national holidays

  • 15 March (Revolution Day): Falls on a Saturday.
  • 20 August (State Foundation Day): Falls on a Wednesday.
  • 23 October (1956 Revolution): Falls on a Thursday, creating a four-day weekend.

Easter and Pentecost

  • Easter: 18-21 April will form a four-day weekend, with Good Friday on 18 April.
  • Pentecost: 7-9 June will create a three-day weekend, with Whit Monday on 9 June.

All Saints’ Day

All Saints’ Day (1 November) falls on a Saturday, meaning no long weekend will be possible.

Christmas and New Year’s

Christmas in 2025 brings a five-day long weekend (24-28 December). However, New Year’s Eve falls on a Wednesday, followed by New Year’s Day on Thursday, splitting the holiday midweek.

Adjusted workdays

To balance the extra days off, three Saturdays will be designated workdays in 2025:

  • 17 May (to compensate for 2 May)
  • 18 October (to compensate for 24 October)
  • 13 December (to compensate for 24 December)

With these adjustments, 2025 promises a mix of holidays and adjusted work schedules, ensuring ample time for relaxation while maintaining productivity.

Free Christmas in 2025?

As we reported before, the Hungarian National Election Committee (Nemzeti Választási Bizottság, NVB) has approved a referendum proposal submitted by the Trade Union of Commercial Employees that seeks to designate 24 December as a public holiday. This step marks significant progress in the union’s efforts to expand recognised holidays in Hungary.

In its Wednesday session, the National Election Committee (NVB) validated a referendum initiative that would make 24 December an official public holiday. The proposal for certification was put forward by the Trade Union of Commercial Employees.

Currently, Hungarian law recognises the following as public holidays: 1 January, 15 March, Good Friday, Easter Monday, 1 May, Whit Monday, 20 August, 23 October, 1 November, and 25-26 December. The proposed referendum question asks: “Do you agree that starting from the calendar year 2025, 24 December should be designated as a public holiday?”

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Featured image: depositphotos.com

Hungarian minister highlights challenge of skilled labour shortage in Brussels

National Economy Minister Márton Nagy said the shortage of skilled labour is the “most important challenge” facing the European labour market ahead of a meeting of the Employment, Social Policy, Health and Consumer Affairs Council in Brussels on Monday.

Nagy noted that 77% of European companies had said that the shortage of skilled labour was the “most challenging” factor for their operations, while 60% had said that it was a “barrier to investment.”

He said the ministers would also discuss the employment and social policy priorities for the 2025 European semester and the traineeship directive. Although a qualified majority does not yet support the traineeship directive, he added, the sides are moving closer.

Related article:

Filipino workers step in to milk cows in a small Hungarian village

Is Hungary’s safety at risk? Police face serious challenges

Read more news about labour shortage in Hungary

 

Number of jobseekers continues to fall in November

The state secretary for employment policy said on Monday that the number of jobseekers in Hungary stood at 224,914 in November, 1,200 fewer than in the same month a year earlier, citing data from the National Employment Service (NFSZ).

The November figure was the lowest for the month in more than three decades, Sándor Czomba said. The number was down 1,300 from the previous month, he added.

He said the government aims to boost the employment rate by tapping the 300,000-strong labour market reserve. Around 23,000 job seekers have found work as a result of recently launched European Union-funded government placement programmes.

The Minister of State for Employment Policy added that in addition to further employment growth, the government’s priority is to increase the purchasing power of incomes. The government has fulfilled the first point of the New Economic Policy Action Plan, which consists of 21 measures. As a result, the minimum wage will rise by 40 percent by 2027, by 9 percent to 290,800 forints in 2025, by 13 percent to 328,600 forints in 2026, and by 14 percent to 374,600 forints in 2027, setting the stage for a fourfold increase compared to 2010. Related article: Three-year minimum wage agreement set to impact everyone’s pay in Hungary

The government will help employers who employ workers on the minimum wage to secure a wage agreement. They will have to pay the increased social contribution tax “on a sliding scale”, i.e. in 2025 they will have to pay the 2024 rate in 2025, in 2026 the 2025 rate and in 2027 the 2026 rate.

read also: Filipino workers step in to milk cows in a small Hungarian village

Featured picture: Depositphotos

Filipino workers step in to milk cows in a small Hungarian village

Filipino workers milking cows in small Hungarian village

In the Hungarian village of Homokszentgyörgy, Filipino workers have stepped in to fill crucial roles at a dairy farm, caring for cows and handling demanding year-round tasks. With local interest in agricultural jobs dwindling, the farm turned to foreign labour through an agency, providing accommodation and integrating the workers into the community. Despite the challenges, both the villagers and the workers have formed a positive relationship, showcasing a unique solution to rural Hungary’s labour shortages.

Filipino workers and locals get on well

In the small Hungarian village of Homokszentgyörgy (with a population of around 900), Filipino workers have taken up a surprising role—milking cows and caring for livestock at a local dairy farm. While the presence of foreign labourers in industrial sectors is now commonplace in Hungary, seeing them in rural agricultural roles marks a significant shift.

According to the report of Sonline, the six Filipino workers live in a refurbished house on Petőfi Street, provided by their employer. Despite not speaking Hungarian, they have integrated into the village community with their polite demeanour and cheerful greetings, endearing themselves to neighbours like Mária Serdültné Kuti, who praises their manners and finds no issue with their presence. The villagers, however, recognise the necessity of hiring foreign workers, citing the lack of interest among locals in such demanding jobs.

Filipino workers milking cows in small Hungarian village
Illustration. Photo: depositphotos.com

According to Homokszentgyörgy’s mayor, János Czinke, the positions at the dairy were likely advertised locally, but either there were no applicants, or they lacked the necessary qualifications. He also notes that foreign workers often accept lower wages, which might make them more attractive to employers.

The need for year-round labour is crucial

At the Bos-Frucht Agrárszövetkezet farm, which manages 700 Holstein Friesian cows and 600 hectares of land, the need for reliable year-round labour is critical. President Barna Egyed explains that maintaining a livestock operation requires dedication every day of the year, from feeding and cleaning to handling veterinary procedures and regular milking schedules. Unfortunately, the local workforce has dwindled, with few young, motivated individuals willing to take on such demanding work.

The Filipino workers, most of whom have prior experience in animal husbandry, were recruited through an employment agency. They quickly adapted to the farm’s rigorous schedule and formed a positive impression of the village. Justine Neil Delgado, one of the workers, shares their perspective with Sonline:

“The work is hard, but we manage. The local people are kind and respectful, and we appreciate them.”

Work and rest: The life of the Filipino workers in Homokszentgyörgy

Life at their accommodation reflects their simplicity and adaptability. With bicycles in the yard and laundry drying on the fence, the Filipinos focus on their work and rest rather than venturing into the village. The cold Hungarian November is a stark contrast to their tropical home, but they’ve adjusted to their new surroundings.

This situation underscores broader trends in Hungary’s labour market, where an ageing population and a lack of interest in certain jobs are paving the way for foreign workers to fill essential roles in unexpected places.

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Featured image: illustration, depositphotos.com

Hungary’s parliament approves workers’ credit and short-term rental permits in Budapest

On Monday, Hungarian MEPs voted on workers’ credit and short-term rental permits in Budapest.

Lawmakers approve workers’ credit

MPs approved legislation on Monday on the rollout of state-subsidised credit for young Hungarian blue-collar workers in parliament.

The legislation was cleared with a vote of 152 for, 8 against, and 17 abstentions.

The free-purpose credit, backed by a state guarantee, will be available to working Hungarians between the ages of 17 and 26 who are ineligible for student loans. Details of the credit will be issued in a government decree.

Parliament votes for a two-year moratorium on the issue of short-term rental licences in capital

Lawmakers voted in parliament on Monday for a two-year moratorium on the issue of licences for short-term rentals in the capital.

The measure was approved with 131 votes for, 27 against, and 19 abstentions. The moratorium starts on January 1, 2025.
As we wrote earlier, Airbnb has addressed an open letter to Hungarian Economy Minister Márton Nagy, urging recognition of home-sharing’s economic benefits amid a government plan to pause new Airbnb permits in Budapest for two years, details HERE.

Hungarian Minister Nagy claims: Wages in Hungary far outshine Romania’s

Márton Nagy minister national economy Romania Hungary

National Economy Minister Márton Nagy spoke at an event in Miskolc on Monday, part of the Joint Venture Association’s Country Ride series.

Hungary is in “a good position”

Nagy said the government’s new economic policy action plan, a “precondition” for boosting economic growth over 3pc next year, was based on economic neutrality.

On the domestic front, he pointed to a gradual increase in retail sales and augured a further improvement in consumption as real wages rose 9-10pc. He also noted a significant increase in domestic guest nights, climbing used car sales and an 8-9pc rise in new car registrations.

Weighing external factors, Nagy said the “real breakthrough” would come when Germany’s economy, which impacts Hungary’s exports as well as its FDI, “pulls itself together”.

In terms of energy, Hungary is in “a good position”, Nagy said, with dynamically growing solar capacity and an expansion of the Paks nuclear power plant in the pipeline.

He said the Demján Sándor Programme for scaling up SMEs would make HUF 1,410bn available to businesses.

Hungarian wages are better than Romanian wages

Márton Nagy gave an interview to Index. In response to their questions, the minister said that the Romanian average earnings statistics also include elements of earnings that do not appear in the Hungarian earnings statistics, such as travel allowances and cafeteria.

Therefore, to compare apples with apples, you should use the Hungarian statistics as a basis for the labour income and not the average earnings. In the first three quarters of 2024, the average gross labour income in Hungary was HUF 678 thousand, which is EUR 1723 converted, while in Romania, it was RON 8379, which is EUR 1648 converted, i.e., almost EUR 40 lower.

According to Márton Nagy, the Romanian economy is unsustainable in the long run, as public wages are pulling the national average, only increasing the twin deficits. As an example, he cited two sectors where Romanian net average wages significantly exceed those of Hungary: public administration and information communications.

According to Márton Nagy, gross income in Romania is taxed more than the average wage in Hungary, so the average net labour income in Hungary is almost EUR 120 higher than in Romania.

He underlined that in 2024, in Hungary, the tax base can be reduced by HUF 66,670 (EUR 166) for one child, HUF 133,300 (EUR 333) for two children, and HUF 220,000 (EUR 550) per child for three or more children, while in Romania the maximum tax base is EUR 25 for one child, EUR 47 for two children and EUR 67 for three children. Hungary has a much more family-support-based tax system, he said.

Márton Nagy said the Hungarian economy is also stronger because 844,000 people in Romania receive the minimum wage, 18.7 percent of the workforce. In contrast, in Hungary, 214,000 people earn a minimum wage (4.6 percent of the employed) and 324,000 earn a guaranteed minimum wage (6.9 percent of the employed). In relative terms, more people earn a minimum wage in Romania than in Hungary.

“According to the latest data, the effective Hungarian minimum wage is the 17th highest in the EU and among the highest in the region, ahead of the Czech Republic, Slovakia, Romania and Bulgaria. The Romanian labour income data are sample-derived estimates, while the domestic one is based on institutional data sources, so the domestic statistics are much more reliable,” he told Index.

From taxes and salaries to cost of living and family benefits, an insightful comparison between Romania and Hungary reveals slight contrasts in quality of life. While it is an ambitious commitment to demonstrate which of the two countries offers a better life, a video showcased some interesting points.

  • Read also: How rude! Romanian President showed his back to PM Orbán for 20 seconds – VIDEO

BREAKING! Three-year minimum wage agreement set to impact everyone’s pay in Hungary 🔄

minimum wages hungary

Representatives of employers, unions and the government signed an agreement on minimum wage increases over the next three years on Monday.

Under the agreement, the minimum wage will rise by an annual average 12pc over the next three years, increasing 9pc to  (EUR 706) HUF 290,800 in 2025, 13pc to 328,600 (EUR 798) in 2026 and 14pc to 909 in 2027.

The minimum wage for skilled laborers will rise by 7pc to 348,800 in 2025.

The sides aim to boost the minimum wage to 50pc of the average wage by the start of 2027. They commit to boosting employee remuneration based on economic growth and business efficiency and productivity improvements.

After the signing, Prime Minister Viktor Orbán said the agreement was based on the assumption that peace would be achieved in 2025 and economic development would advance accordingly. He added that GDP growth over 3pc was “realistic” in 2025.

Acknowledging that the agreement was based on an optimistic scenario, he said that an override clause had been included allowing modifications in case of contingencies. He added that the government trusted that activating the clause would not be necessary.

Orbán said implementing the agreement would not be easy, adding that repeating the economic performance of 2024 and 2023 would be insufficient to justify the wage increases. Management and workers “need to do more for economic growth than in the preceding years.”

He said that the minimum wage, adjusted for inflation, was expected to climb by 29pc.

Orbán augured a “fantastic” year in 2025 with economic growth supported by a “boom” in state investments. He said 300 new investment, with a combined value of EUR 19.72bn (HUF 8,100bn), would start next year, pumping HUF 450bn into the economy in 2025. He added that the upgraded Budapest-Belgrade rail line would be completed in 2025, while big factories would be inaugurated in Győr, Szeged and Debrecen.

He said SMEs would benefit from the Demjan Sandor Programme that would make EUR 3.41bn (HUF 1,410bn) accessible to local businesses, while young workers could avail of a zero-interest credit scheme and employers could apply tax preferences to more non-wage benefits for housing.

Orbán said the government wanted to see the average wage rise to HUF 1 million/month “in the foreseeable future”. He added that the government was ready to take steps to support businesses in achieving that goal.

Orbán acknowledged the work of National Economy Minister Márton Nagy and Finance Minister Mihály Varga at the wage talks.

read also: Is Hungary’s safety at risk? Police face serious challenges

László Perlusz, the chief secretary of business association VOSZ, said the agreement was “extraordinarily ambitious”.

Melinda Mészáros, the head of unions association Liga, noted that the agreement allowed for corrections if macroeconomic assumptions diverged from GDP or wage developments.

read also: Will employment of guest workers in Hungary face further restrictions soon?

Is Hungary’s safety at risk? Police face serious challenges

police

Hungary is a popular tourist destination because it is perceived as a safe place, but one question arises: how long can this be maintained when there is a huge police shortage?

Police shortages

An article by HVG reports that police shortages could be much higher than the officially published police figures, according to trade unions. They say the government is hiding the problem and that in the central part of the country, for example, they can often only ensure adequate numbers by sending uniformed officers from other parts of the country.

Official figures show a shortfall of only 4-5,000, with a 91.3 percent saturation rate, yet there are reports that fish guards have been deployed to patrol some areas.

Police presence

It also tells us that Isaszeg, for example, which is part of the Budapest agglomeration, has only sent patrols to its 12,000 residents when the municipality pays millions extra to the police. This also means that in Hungary, police presence in cities is not included in the basic service.

Additionally, a key element of the police shortage is that, since the border police were disbanded under the first Orbán government, the police are still protecting the southern border from migration pressure, where they are being deployed. In addition, the government’s policy also requires police officers to serve abroad, for example, in the Balkans, in the fight against migration, while there are not enough local police.

Low pay, low number of applications

The situation is no better regarding police recruitment: around 2,000 police officers are recruited yearly. The 10-month patrol training course is attended by 500-700 people a year, while the two-year officer training course attracted thousands more a few years ago. This September, only 116 people started their studies at police technical schools, HVG reported, citing the National Police Headquarters.

In an interview with RTL last year, police human resources chief Csaba Czene said that, including all training and recruitments, 1,000-1,100 new police officers are recruited each year. This also means that they can broadly compensate for those leaving, but he admitted that the other sectors have a solid drain, especially in Budapest and the central part of the country.

Police salaries are not very attractive, despite pay rises in recent years, because much of them have been eroded by inflation: the average salary for professional staff is around HUF 470,000 net (EUR 1,100), including bonuses.

Firefighters have the same problem

In fact, the problem is not unique, the fire brigade has an official understaffing of 10 percent, but the union understands that there are municipalities where the problem is much greater. The firefighters’ union said that in Debrecen, Hungary’s second-largest city, a quarter of the staff is missing.

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Official: Minimum wage in Hungary to rise in 2025

forint wage growth salary money rákosrendező

The minimum wage will rise by 9% in 2025, by 13% in 2026 and by 14% in 2027, Sándor Czomba, the state secretary for employment policy, said at an event on Thursday.

Czomba noted that the minimum wage would rise by 12% on average in the next three years. The minimum wage for skilled labourers would increase by 7% next year, he added. It wasn’t easy, but an agreement on wages has been reached by the representatives of the government, employers and unions, he said. With the wage increases the government wants to see the minimum wage reach 50% of the average wage by January 1, 2027, he added.

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Featured image: depositphotos.com

Breaking: A groundbreaking step in Hungary’s wage negotiations for 2025

Hungary Wage Negotiations

At the latest meeting of the Permanent Consultative Forum for Hungarian Industry and Government, another meaningful step was taken towards determining the 2025 minimum wage and guaranteed minimum wage. While a final agreement has not yet been reached, the drafting of the final text is already underway which is an encouraging sign of progress.

Throughout the discussions, both unions and employers have made compromises to close the gaps that have surfaced in recent weeks. According to 24.hu, optimism is growing, fuelled by the participants’ willingness to meet halfway and the emerging framework of a three-year wage agreement that could bring much-needed stability to the labour market.

Hungary Wage Negotiations
Source: Pixabay

Economic challenges and considerations

Economic realities have significantly shaped the negotiations. Third-quarter GDP data revealed weaker-than-expected performance, putting added pressure on discussions. Employers, facing these economic challenges, struggled to support the initial proposal for a double-digit wage increase.

While the idea of a 10% rise was widely seen as too steep, a more modest 8% increase was deemed feasible by many. That said, employers have not ruled out higher increases entirely, but they have set clear conditions. Many are looking to the government for support, such as tax cuts, to offset the financial impact. The final outcome will heavily depend on how these economic factors are managed and whether unions’ demands can align with what employers and the government find sustainable.

Hungary Wage Negotiations
Source: Pixabay

The current state and goals

There is broad agreement between trade unions and employers on the need for a long-term wage framework, with the ambitious goal of raising the minimum wage to 50% of the average gross wage by 2027. Achieving this will require a concerted effort from unions, employers, and the government. A multi-year agreement could provide much-needed stability, offering businesses and workers predictable wage growth.

Under current plans, the minimum wage is set to rise by 10%, with the guaranteed minimum wage increasing by 7% from the 1st of January 2025. According to Világgazdaság, this would see the minimum wage grow from its current gross value of HUF 266,500 (EUR 655) to HUF 293,150 (EUR 720), and the guaranteed minimum wage increase from HUF 326,000 (EUR 800) to HUF 348,820 (EUR 850). These changes will affect a substantial number of workers—particularly the guaranteed minimum wage increase, which could impact 700,000 to 750,000 individuals.

While these adjustments will place a considerable strain on businesses, they also mark a step closer to aligning Hungarian wages with European standards. Over time, these increases could improve the quality of life for low-wage workers and contribute to higher average earnings, ultimately benefiting the broader economy.

The negotiations so far

Negotiations are set to resume on Wednesday, with participants expected to consult further with their respective organisations beforehand. The League of Trade Unions’ leader has expressed confidence, calling an average annual increase of 12% over three years a realistic target. Encouragingly, all sides appear to be converging on their positions. While details remain under wraps, a growing willingness to compromise is evident. Whether all stakeholders ultimately agree remains uncertain, but optimism surrounds the possibility of finalising key issues in the next round of discussions.

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Hungarian government introduces zero-interest loans for young Hungarian workers as part of new economic policy

The National Economy Ministry on Wednesday announced the launch of public consultations on a government scheme to offer young Hungarian workers zero-interest loans.

The ten-year loans up to HUF 4m (EUR 9,800), available to working, non-graduates between the ages of 17 and 25, will be available from the start of 2025. The scheme could support career starters with around HUF 500bn, the ministry said.

Borrowers must work at least 20 hours a week, under contract or as an entrepreneur. They must also pledge to continue to work in Hungary for a period of at least five years.

Women who take out the loans will get a two-year grace period after the birth of their first child. Half of the loan’s principal will be forgiven after the birth of a second child and the full amount after the birth of a third.

The scheme is part of the government’s New Economic Policy Action Plan which seeks to boost Hungarians’ purchasing power, ensure affordable housing and scale up SMEs.

Read also:

Featured image: depositphotos.com

Employers, unions could reach wage agreement ‘in weeks’ in Hungary

An agreement on wages between employers and unions could be reached “within a few weeks”, Sándor Czomba, the state secretary for employment policy, told public media on Tuesday.

New minimum wage in Hungary

Czomba said talks on Monday had done much to bring the sides closer to an agreement. He noted that employers backed minimum wage rises of 8pc in 2025, 10pc in 2026 and 12pc in 2027, while unions wanted increases of 10pc in 2025, 12pc in 2026 and 14pc in 2027.

He said the sides wanted to see the minimum wage reach 50pc of the average wage by January 1, 2027, a goal that could be achieved with a minimum wage rise of either 8pc or 10pc in 2025. If the minimum wage is to reach the equivalent of EUR 1,000/month, while the gross average salary climbs to HUF 1m/month, the minimum wage needs to rise by an annual 12pc, on average, or 10pc in 2025, 12pc in 2026 and 14pc in 2027, he added.

Although just 210,000-220,000 people earn the minimum wage, the impact on higher earners can be “very big”, he said.

Czomba said the agreement on the minimum wage rises was a matter for employers and unions to hash out, but acknowledged the effect on state-owned companies such as railway company MÁV and postal company Magyar Posta.

Hungary salary worker entrepreneur
Photo: facebook.com/szijjarto.peter.official

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Featured image: depositphotos.com

Chamber head launches consultations on minimum wage rise in Hungary 🔄

Elek Nagy, the recently elected president of the Hungarian Chamber of Commerce and Industry (MKIK), has launched broad consultations with the support of local chambers on next year’s minimum wage rise, MKIK said on Monday.

The consultations will take place from November 11 to 20, and the results will be presented to the VKF, a forum of unions, employers, and government representatives, on November 22.

MKIK said economic players’ ability to shoulder burdens, which correlates to their productivity, needs to be taken into account when establishing wage policy. It added that the time has come to learn where a wider circle of businesses stand on the matter.

MKIK is also launching a representative survey of several hundred companies that will allow businesses to weigh in.

They are asking and encouraging all sectoral, professional, trade union and other associations who feel involved in this issue to join and send an online questionnaire to their members on 11 November to give as many people as possible the opportunity to express their views. Link: https://kutatas.gvi.hu/index.php/825163?lang=hu

UPDATE

Unions and employers wrangle over minimum wage increases

Unions and employers are striving to reach a three-year agreement on minimum wage increases, but are still at odds over the scale of those rises, representatives from both sides told MTI on Monday, after a meeting of the monitoring committee of the VKF, a forum established for the sides to consult.

Lászlo Perlusz, the chief secretary of business association VOSZ, said employers could envision a minimum wage rise of 8pc in 2025, 10pc in 2026 and 12pc in 2027. He added that talks with the government on a reduction in businesses’ tax burden needed to take place after the publication of first-quarter GDP data. Imre Palkovics, who heads workers council association MOSZ, said unions backed a minimum wage rise of 10pc in 2025, 12pc in 2026 and 14pc in 2027.

read also:

Blue-collar wages surge: Hourly pay jumps 13.1% in Q3 in Hungary

Surprisingly, Hungarians are not only going to the West to work

Hungary’s largest steel plant faces crisis: Indian Liberty and Government clash over blame

The National Economy Ministry has repeated its instruction to India’s Liberty Steel to pay its liabilities and stop hampering payroll transfers from the state’s Wage Guarantee Fund.

In a statement issued on Saturday, the ministry said the government was following the situation closely and had offered assistance on a number of occasions to allow the restart of production at the Dunaújváros steelworks, which Liberty acquired in a liquidation procedure, in spite of the difficult industry circumstances.

It added that Liberty has not done enough to fulfill its pledges, has repeatedly hindered payroll, and has failed to settle its liabilities with the state and its suppliers.

The ministry said that although Liberty has signalled that it is prepared to make payroll from the Wage Guarantee Fund, it has not done so until now.

Liberty reaction

When contacted by Portfolio, Liberty wrote:

“Our discussions on fulfilling the conditions for the successful operation of Liberty Dunaújváros have not progressed as expected. The payment of salaries was made last month in the hope that this would allow negotiations to continue with the parties concerned to support the company, but the necessary progress has not been made to allow the planned restart. Short-term government and other stakeholder support is needed to restart the business.”

They added that if the participants decide not to support the plant’s future, they will consider “strategic options,” including negotiations with potential new investors.

As we wrote earlier, Hungary’s largest steelwork in deepening trouble, and liquidation started – details HERE

read also: Hungary to introduce stricter emission caps than the EU

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions

KATA tax reforms have reshaped Budapest’s food delivery landscape, cutting courier earnings and pushing many to leave or work long, gruelling hours. With couriers stretched thin and new workers entering on reduced pay, service quality has come under scrutiny, raising concerns about consumer protection.

Protecting consumers

G7 reports that the Ministry of National Economy has initiated an intensive consumer protection audit of the food delivery sector following a surge in customer complaints. The investigation will examine issues such as food quality upon delivery, delays, service charge structures, and compensation options for affected consumers. This scrutiny is significant as it may reveal the impact of recent policy changes, like the reformed small business flat tax (or KATA tax) and the rise in guest workers, on the sector. Additionally, it highlights the challenges of defining and enforcing consumer protection standards for platform providers like Foodora and Wolt.

Foodora Hungary
Photo: Foodora HU

What influences the quality?

Food delivery quality is influenced by three separate players: the restaurant, the courier, and the platform company connecting the two. Each operates independently, meaning that restaurants may occasionally miss delivery deadlines due to sector-wide labour shortages, though they rarely send orders cold. Couriers, motivated by earnings, generally work quickly but can face challenges en route that impact quality, such as spills or wet bags. The platform company, meanwhile, provides the technology that manages the customer-restaurant-courier relationship through algorithms, though this becomes harder as demand rises.

A significant factor in the sector is the lack of a formal employer-employee relationship between couriers and platform companies, which complicates scheduling to meet fluctuating demand. Recent KATA tax changes and persistent courier shortages in Budapest have further impacted the market, limiting the ability to adapt working hours to high-demand periods. As a result, delays are more likely in bad weather, when demand surges and courier availability drops, while favourable weather can reduce couriers’ hourly earnings due to fewer orders.

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions
Photo: depositphotos.com

KATA tax changes bear negative effects

The 2022 amendment to the KATA tax rules has significantly lowered the potential income for food delivery couriers, prompting many to leave the sector or work extended hours without limits as independent contractors. New couriers, often guest workers or individuals supplementing primary jobs, face this reduced income level, which may lead to fatigue, mistakes, and lower service quality. Unlike cities like Vienna, where couriers can be full-time or part-time employees with consumer protection benefits, Budapest’s platform-based model limits organisation and accountability, as platform companies coordinate legally independent contractors. The ongoing government inspection may ultimately target platform companies, yet regulatory challenges remain, as these digitalised models operate with minimal consumer protection across sectors globally.

Read also:

Featured image: depositphotos.com

Surprisingly, Hungarians are not only going to the West to work

Austria guest workers hungarians

With Austria, Slovakia, and Romania drawing Hungarians across borders to work, recent statistics from the Hungarian Central Statistical Office (KSH) shed light on this growing trend of cross-border employment. Austria remains the most popular destination, with Slovakia and Romania emerging as surprising, though significant, alternatives for Hungarian workers.

Austria is the most popular foreign country for Hungarians to work

Hungarians in Austria
Source: depositphotos.com

In 2022, the KSH reported that 122,000 Hungarian residents commuted to work abroad, making up nearly 3% of Hungary’s total workforce, Portfolio reports. Around 80% of these cross-border commuters headed to Austria, especially from western border towns, motivated by Austria’s higher wages despite the country’s higher cost of living. As of April 2024, Austria employs 118,000 Hungarians, marking a 4.4% increase in one year, according to G7. This influx makes Hungarians the second-largest foreign workforce in Austria, only outnumbered by Germans. Projections suggest that Hungarians may soon become the largest expatriate group in Austria, driven by wage differences and economic opportunities.

Interestingly, almost half of Hungarian employees in Austria commute rather than relocate, given Austria’s higher living costs. Commuting allows them to take advantage of Austria’s higher median wages—around EUR 2,000 monthly for Hungarians—without paying Austria’s elevated rent and consumer prices. Despite earning 27% less than the average Austrian, Hungarian wages in Austria are significantly higher than comparable wages at home, making commuting an attractive option. Yet, Hungarians in Austria often hold physical, non-office roles, with limited options for remote work, and the Hungarian government has yet to support remote work arrangements through a framework agreement, adding a layer of complexity to these cross-border jobs.

More and more people commute to Slovakia and Romania too

Brasov, Romania DRacula's castle Hungarian Days festival Wizz Air
Brassó (Brasov) in Transylvania, Romania. Source: depositphotos.com

Surprisingly, Hungary’s eastern and northern border regions are also seeing substantial commuting patterns to Slovakia and Romania. According to KSH’s findings, many residents from Borsod-Abaúj-Zemplén County travel to Košice in Slovakia, while others from southeastern Hajdú-Bihar County commute to Oradea in Romania. Sándor Baja, CEO of Randstad Hungary, noted during the Budapest Economic Forum that a trip to Biharkeresztes would reveal “dozens of buses transporting Hungarian workers to Oradea.” This observation hints at a shifting perception of Romania’s wage competitiveness.

Recent insights challenge Hungary’s traditional view of Romania as a lower-wage country. As Árpád Boros, Staufen’s country manager for Hungary and Romania, explained, Romania’s wages have largely caught up with those in Hungary. In certain regions, wages in Romania even exceed those in Hungary, positioning Romania as an increasingly viable destination for Hungarian workers seeking better pay.

Higher wages key motivator for Hungarians

Higher wages remain a key motivator for these commuters, yet the decision is not purely financial. Austria’s living costs, 1.6 times those of Hungary’s according to Eurostat, mean that cost-adjusted wage advantages diminish, as we wrote earlier. When factoring in the cost of living, the Austrian median gross wage only represents a 1.6 times increase over Hungarian wages, rather than the 2.5 times difference indicated by unadjusted figures. Despite hopes that Hungary’s rising wages might curb cross-border commuting, the widening wage gap is pushing more Hungarians to seek better-paying opportunities abroad each year.

Whether in Austria’s bustling sectors or Romania and Slovakia’s border industries, the appeal of cross-border employment persists, fueled by wage disparities and limited remote work options at home. As neighbouring countries attract growing numbers of Hungarian workers, these cross-border patterns underscore the ongoing economic challenges faced by Hungary’s workforce.

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AutoWallis Group opens first Renault and Dacia dealership in Budapest

Listed car seller AutoWallis Group announced the opening of its first Renault and Dacia dealership in Budapest on Wednesday.

AutoWallis dealership opens in Budapest

The showroom and service centre will operate in partnership with Portugal’s Salvador Caetano Group.

Parallel with the opening, the AutoWallis dealership is selling 200 new Renault Clio models to wigo, AutoWallis Group’s carsharing business.

autowallis group renault dacia budapest (1)
Photo: AutoWallis

State secretary: Labour market remains tight in Hungary

Hungary’s labour market remains tight, the state secretary for employment at the National Economy Ministry said on public television on Wednesday.

Sándor Czomba noted that Hungary had the eighth-lowest jobless rate in the European Union, while it was among the top ten member states in terms of employment.

He acknowledged a four-tenths of a percentage point increase in the unemployment rate in a year-on-year comparison but said the number of registered jobseekers, at 226,000, stood at a 34-year low.

The jobless rate is increasing as more economically inactive Hungarians join the labour market, he added.

Commenting on the impact of the sluggish German economy on Hungary’s automotive industry, Czomba said government officials were in daily contact with local companies to ensure they could get through the period without making layoffs.

He added that electromobility investments in Nyíregyháza, Debrecen and Szeged would require more labour.

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